CFIB welcomes small business tax cutBy The IJ Staff | October 17 2017 11:30AM
The Canadian Federation of Independent Business (CFIB) says it welcomes the federal government's decision to reinstate its promise to reduce the small business corporate tax rate to 9 per cent, but underlined that it remains concerned about proposed changes aimed at income sprinkling.
"I am pleased to see the government make good on its commitment to lower the small business rate by 2019," said CFIB president Dan Kelly in a statement Oct. 16. "This decision will pump hundreds of millions of dollars back into the small business community, helping them create more jobs and grow the economy."
Sharing income with family members
"Still, the changes to rules allowing business owners to share income with their family members remain a concern for middle-income businesses."
CFIB says it is pleased the government “has provided some clarity on the new rules around income-sprinkling – particularly, they will no longer be moving forward with measures that limit access to the lifetime capital gains exemption.” However, CFIB says the changes may not reflect the many formal and informal ways family members participate in the business.
Passive income rules
The CFIB adds that it “is anxiously awaiting” details on passive income rules and the treatment of capital gains related to business succession. "We will wait for details and analysis on all the changes before passing judgment on the entire package," added Kelly.